Just getting started with wholesaling confused on ARV formula

[Karein Langdell]

So I’m just getting started with wholesaling in realestate. So far  I’ve been looking at videos (mainly Jerry Norton and a few other gold nuggets but not gurus), I’ve joined Facebook groups, telegram groups and now bigger pockets. I’m trying to be a good wholesaler I don’t want to be one of the bad ones that overprice deals. 

I've also started up an LLC and I am working towards getting my realestate license even though I am in a state where I don't NEED to have it for wholesaling. But I'm taking everything seriously and just trying to understand what I'm doing before going in.

I’ve also got propstream and I’m setting money aside for skiptracing and post cards. 

Which brings me to my question. 

So I understand how to estimate repair costs. I understand how much paint/carpet, kitchen/bathroom update, roof and foundation, etc should cost. 

And I get you factor that into your MOA. 

What has me lost is how do I find out the percentage that I use? From what I gathered .70 is the norm. 

However with covid things have changed. Some are going .80 or even higher for a discount? 

Not only that, it depends on your market and sometimes the buyers preference.

how would I know which amount to use? No one is really explaining that bit.

[Karein Langdell]

@Ned Carey

thank you so much for clarifying things for me. 

It definitely makes a lot more sense. 

What I’ll do is I start reaching out to my buyers list and asking them what they’re looking for and what formula they use, and go from there. 

That way I’m not shooting in the dark and guessing things and I can give them a deal they’d want.